Nov 5, 2026, 4:17 PM ETConsumer Cyclical

Funko, Inc. — Third Quarter 2026 Earnings Summary

FNKOFUNKO INC

Financial Performance

Net sales increased 3.0% year-over-year to $258.3 million for the quarter ended September 30, 2026, compared to $250.9 million in the prior year period.
Gross profit was $116.9 million, representing a gross margin of 45.2%, up from $100.8 million (40.2% margin) in the prior year.
SG&A expenses were $86.9 million (33.6% of sales), compared to $79.8 million (31.8% of sales) in the prior year.
Net income was $7.5 million ($0.13 per diluted share), compared to $0.9 million ($0.02 per diluted share) in the prior year.
Adjusted net income was $9.2 million ($0.16 per diluted share), compared to $3.2 million ($0.06 per diluted share) in the prior year.
Adjusted EBITDA was $32.1 million, compared to $24.4 million in the prior year.
Total cash and cash equivalents were $41.6 million at September 30, 2026, down from $42.1 million at December 31, 2025, and up from $39.2 million at September 30, 2025.
Inventories were $91.6 million at September 30, 2026, up from $83.1 million at December 31, 2025, and down from $99.8 million at September 30, 2025.
Total debt was $195.9 million at September 30, 2026, down from $225.3 million at December 31, 2025, and $241.0 million at September 30, 2025.
For the nine months ended September 30, 2026, net income was $4.8 million compared to a net loss of $68.1 million in the prior year period.

The company reiterated its full-year 2026 net sales guidance of flat to up 3%.
The company reiterated its full-year 2026 gross margin guidance of 46% to 47%, which includes a $25.4 million Q2 tariff-related benefit.
The company reiterated its full-year 2026 Adjusted EBITDA guidance of $100 million to $110 million, which includes the $25.4 million Q2 tariff-related benefit.
Future growth is expected to be driven by continued growth in Core Collectibles and a decision to rationalize Loungefly's SKU count to concentrate on products with stronger demand and return potential.

Core Collectibles net sales increased 4.8% to $210.1 million, compared to $200.4 million in the prior year.
Loungefly net sales decreased 9.8% to $40.3 million, compared to $44.7 million in the prior year.
Other category net sales increased 37.0% to $8.0 million, compared to $5.8 million in the prior year.
International markets are cited as a source of strength, with Europe sales growing 11.5% and Other International sales growing 12.1%.
United States sales decreased 2.4% to $151.7 million, compared to $155.4 million in the prior year.
Strategic initiatives mentioned include WWE integrating Funko into storytelling, expansion into "A Court of Thorns and Roses," the bidding frenzy around POP! 250, and a dedicated shop at FAO Schwarz.

The company describes itself as a leading pop culture lifestyle brand focusing on building a more focused and profitable business.
Management notes that the strategy "Make Culture Pop!" is becoming a more deliberate and disciplined growth engine.
The company is sensing demand earlier and translating cultural moments and emerging fandoms into distinctive products.

Risks include impacts from economic downturns, changes in the retail industry, and risks associated with international operations, including tariffs and trade restrictions.
Risks related to indebtedness include the ability to comply with financial and negative covenants under the Credit Agreement.
Other risks include dependence on third-party content development, ability to protect intellectual property rights, fluctuations in gross margin, and seasonal impacts.
Specific risks include the influence of significant stockholder TCG, the possibility of conflicting interests, and the impact of the Tax Receivable Agreement (TRA) on Class A common stockholders.

CEO Josh Simon stated that Q3 was a strong quarter marked by net sales growth, continued gross margin strength, and adjusted EBITDA above guidance.
Management expressed confidence that the company is building a more focused and profitable business and that the strategy is coming together.
Management indicated a rigorous focus on scaling what works and expanding fan discovery through retail and experiences.

The company hosts a webcast conference call on November 5, 2026, at 4:30 p.m. Eastern Time to discuss results.
For the full year 2026, the company expects equity-based compensation of approximately $12 million, depreciation and amortization of approximately $60 million, and interest expense of approximately $20 million.
For the fourth quarter of 2026, the company expects equity-based compensation of approximately $4 million, depreciation and amortization of approximately $14 million, and interest expense of approximately $5 million.
The company reported a $25.4 million Q2 tariff-related benefit included in the full-year guidance.
Non-GAAP financial measures used include adjusted net income, adjusted net income per diluted share, and adjusted EBITDA.